Lockheed Martin Corporation (NYSE:LMT) reported first-quarter 2026 results on Thursday. Shares traded lower after the release, as the company missed earnings and revenue expectations.
Earnings Miss And Cash Flow Pressure
- Sales were $18.021 billion, below the $18.244 billion estimate, and diluted EPS of $6.44 missed the $6.71 estimate. Sales were flat year over year, while EPS declined from $7.28 in the prior-year period.
- Net earnings were $1.5 billion, compared to $1.7 billion a year earlier.
- Operating profit was $2.06 billion, down from $2.37 billion, while business segment operating profit declined 13% to $1.82 billion. Operating margin fell to 11.4% from 13.2%.
- Cash from operations totaled $220 million, compared to $1.4 billion in the prior year. Free cash flow was negative $(291) million, versus $955 million last year, mainly due to higher working capital from billing timing.
- Capital expenditures were $511 million. The company also spent $458 million on independent R&D, paid $816 million in dividends, and repaid $1 billion in debt.
Mixed Segment Performance
Aeronautics sales fell 1% to $6.95 billion, while profit was down 14% due …